Mastec: Mizuho initiates coverage with Outperform rating, sets price target at $215.

Mastec: Mizuho initiates coverage with Outperform rating, sets price target at $215.

Mizuho Financial Group has initiated coverage on MasTec (NYSE: MTZ) with an Outperform rating, setting a price target of $215.00. The analyst, Maheep Mandloi, highlighted the company's strong performance and growth prospects in the clean energy and power delivery sectors [1].

MasTec, a $13.9 billion construction services company, generated approximately 55% or over $6.75 billion in sales from clean energy and power delivery last year. According to Mizuho, this segment is expected to grow to 64% or approximately $9 billion in 2025, aligning with the company’s projected 14% revenue growth forecast for FY2025 [1].

The firm projects U.S. solar capital expenditure to rise from $53.6 billion currently to $57.1 billion in 2028, while power delivery, representing electric utility capital expenditure, is forecast to grow at a 4.4% compound annual growth rate from $197 billion today to $225 billion in 2028 [1]. These markets are being propelled by increasing power demands from artificial intelligence data centers, electrification trends, and reindustrialization efforts.

Mizuho noted that MasTec is well-positioned to benefit from this growth, with strong cash conversion, pipeline margins above 18%, and a sales mix increasingly weighted toward clean energy and power delivery [2]. The company’s recent second-quarter results have prompted several analysts to adjust their ratings and price targets, reflecting a positive outlook from the investment community.

In other recent news, MasTec has announced a temporary blackout period for its 401(k) Retirement Plan participants due to a transition in recordkeeping services [1]. This change will occur as the company moves its recordkeeping from Bank of America/Merrill Lynch to Schwab Retirement Plan Services, Inc., effective October 1, 2025.

References:
[1] https://www.investing.com/news/analyst-ratings/mastec-stock-initiated-with-outperform-rating-by-mizuho-on-clean-energy-growth-93CH-4223577
[2] https://www.investing.com/news/stock-market-news/mizuho-sees-grid-data-center-boom-driving-multiyear-upcycle-for-us-contractors-4224811